What is Livestock Risk Protection?

Livestock Risk Protection (LRP) is customizable price protection for cattle and hogs.

How does Livestock Risk Protection work? 

You have the opportunity to lock in a coverage price based on the futures closing price. You select the number of head, expected selling weight, and expected selling date. If the actual price is less than the coverage price, an insurance claim will be paid.

What are the benefits of Livestock Risk Protection?

  • Lock in a guaranteed price.
  • Limited basis risk. The coverage price is based on the futures contract, but the ending value is based on the “cash” market.
  • Insure a specific number of head.
  • Ability to select a coverage price ranging from 70-100% of the future’s closing price.
  • Match up the selling date and weight with coverage options.
  • Premium due first day of the month following end date of coverage.
  • Premiums are subsidized 35-55%.

For more information or to obtain a quote, contact Betsy Harms @ 641-847-9847.